One of the biggest threats that most companies, big or small, are facing is cyber-attacks. Recent attacks like the WannaCry and Petya have caused catastrophe to companies around the globe.

Unfortunately, this is an area that is relatively new to most corporations and most spend minimal time to think about the risks involved. Yet, with the increase in magnitude and frequency of such attacks, companies can no longer ignore this risk. Put in another way, demand for such services is increasing and many companies are vying to capture a share of this market.

In Singapore, one of the companies that are actively pursuing…

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One of the biggest threats that most companies, big or small, are facing is cyber-attacks. Recent attacks like the WannaCry and Petya have caused catastrophe to companies around the globe.

Unfortunately, this is an area that is relatively new to most corporations and most spend minimal time to think about the risks involved. Yet, with the increase in magnitude and frequency of such attacks, companies can no longer ignore this risk. Put in another way, demand for such services is increasing and many companies are vying to capture a share of this market.

In Singapore, one of the companies that are actively pursuing growth in this area is Singapore Telecommunications Limited(SGX: Z74) or Singtel, one of the three main telecoms in Singapore. The other two are M1 Ltd(SGX: B2F) and StarHub Ltd(SGX: CC3).

The emphasis that the company has put in this area is clearly evident in its latest annual report. Below are a few examples to illustrate my point.

Simon Isreal, the chairman of the company, in his chairman letter said this:

“Cyber security is a high-growth sector where we have established a global platform by leveraging our acquisition of Trustwave, a US-based leading managed security services provider. We are building out a global cyber security business which we expect to become a key growth driver in our future. Coupled with our existing ICT assets and capabilities, we are well placed to provide a comprehensive set of managed services with carriage solutions that will create more value in the long term.”

In other words, Mr Simon acknowledges that cyber security is a growth area, and SingTel is actively positioning itself for growth in this area.

Furthermore, the Group CEO, Chua Sock Koong in her CEO review, mentioned the following:

“Our enterprise business delivered a strong performance for the year. Demand for ICT services, particularly cyber security, remained resilient despite the subdued economic and business environment.

As cyber security emerged as a critical issue for governments and businesses, we were in a good position to win new business with our cyber security arm Trustwave.”

In terms of the key actions taken in the last year, the CEO mentioned the following:

“To further strengthen our cyber capabilities and expand our cyber network globally, we launched a new advanced security operations centre in Sydney as well as the NUS-Singtel Cyber Security R&D Lab in Singapore to innovate new IP and technologies.

We also formed the Singtel Cyber Security Institute to lift the cyber security expertise and preparedness of C-suites in the region. These investments are designed to develop a comprehensive cyber eco-system and grow our leadership in this space.”

In short, the CEO explains the actions that SingTel has taken to position itself in this market.

Conclusion

Cyber-security has become an important risk that companies have no choice but to address. Here, SingTel is actively positioning itself to capture the growth in this area through various active investments and also setting up R&D centres.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.

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